Skip to main content

How Canada Life is supporting you during COVID-19. Learn more

Your web browser is out-of-date. For the best experience, please update to a modern browser like Chrome, Edge, Safari or Mozilla Firefox.

Locked-in Retirement Fund (LRIF)

Use your registered pension savings for retirement income

A LRIF provides people with Newfoundland and Labrador regulated pension funds a flexible income

  • Estate preservation

    If there’s money left in your plan when you die, it goes to your spouse, beneficiaries or estate, subject to applicable legislation (less any applicable taxes).

  • Tax advantages

    You only pay income tax on the money you withdraw each year.

  • Flexible income with growth potential

    You control investments within your plan, so you can hold a variety with potential for growth.

What is a Locked In Retirement Fund (LRIF)?

If you have Newfoundland and Labrador regulated locked-in pension funds, a LRIF allows you to convert those funds into retirement income while deferring taxes.

Funds can be transferred to a LRIF from a workplace pension plan when you leave employment at or before retirement. Funds can also be transferred to a LRIF from a LIRA or LIF.

How does a LRIF work?

  • You can only transfer money from a LRIF after you turn 55 (or the earliest date you are entitled to a pension under your former workplace pension plan)
  • You can work with an advisor to choose the right investments for you
  • Each year, you must withdraw an amount between the legislated minimum and maximum

Are there any pros or cons I should think about with a LRIF?

  • Advantages:

    • Control over income and investments
    • Growth potential
    • Death benefit (any money left over goes to whomever you choose)
  • Considerations:

    • Requires some financial decision-making 
    • Legislated minimum and maximum withdrawal amounts
    • Potential for market volatility
    • Potential to run out of money, particularly if you unlock funds
    • Your spouse or common law partner's consent may be required

Let us help you plan for your retirement today.

Learn more

The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.